Australian Wool Innovation Limited says Australian auction offerings and test volumes both saw solid falls year-on-year for the first half of the 2005/06 season, but an increase in the clearance rate for the first quarter resulted in auction sales declining more modestly.
However, when factoring in non-auction sales (AWEX figures) for the current season, sale volumes have dropped in proportion with the decline in test volumes and auction offerings.
This decline in non-auction sales continues a trend that has been apparent over the last 5 seasons.
In recent seasons, this decline can be partly attributed to the low price volatility and the slow fall in wool prices which are not conducive to sales on 'offer boards', a large component of non-auction sales.
For the July to September 2005 quarter, auction offerings decline year-on-year and in response clearance rates increased only slightly in the first quarter.
In contrast, for the second quarter of 2005/06 (October to December 2005), offerings were slightly higher than for the same period in 2004. Clearance rates remained unchanged year-on-year.
As such, total auction sales for this quarter rose 2 percent.
With the sharp lift in prices in January, auction clearance rates have also lifted.
Australian Wool Innovation Limited
marketing@alchempro.com
